Capital Gains Tax

The introduction of the new ’30 day window’ between the date an asset is sold and the date the CGT is due for payment has been delayed until April 2020.

From 6 April 2019 onwards legislation may be introduced which would see non-UK resident individuals chargeable to CGT on the disposal of UK non-residential property.

While CGT announcements in this year’s Budget were scarce, the following applies:

CGT rates
The CGT rates in place from 6 April 2018 are as follows:

basic rate taxpayer 10%

higher rate taxpayer 20%

However, there is an 8% ‘surcharge’ added for gains on residential property.

This means if you sell a property not covered by Private Residence Relief, you will be subject to CGT at the rates of 18% (basic rate taxpayer) or 28% (higher rate taxpayer).

Annual exemption

The annual exempt amount, which is the amount of gain that a person can make on the disposal of an asset before they have to pay any CGT, is set at £11,300 for the current 2017/2018 tax year. This will rise to £11,700 for disposals made in the 2018/2019 tax year.

Planning should be undertaken before disposing of any assets to ensure that the annual exemption and any other available reliefs are taken advantage of. Please contact a member of our tax team on 01228 711888 if you have any queries or are thinking of making a disposal.